Michigan Schedule 1

[neramseyer]

Michigan Schedule 1 is being filled out incorrectly by Turbo Tax.  When going into forms it does not allow me to correct the information.  What is my next step?  Michigan turbo tax needs an update to correct mistakes!!!

[LeticiaF1]

TurboTax transfers data from your federal return to your state return. Before you begin troubleshooting your state return, go back through your federal return and make sure everything is correct.

After you review your federal return, select the State Taxes tab and review the state section. Pay close attention to the information, especially if you have made changes to your federal return. There might be new sections that need to be completed. 

Troubleshooting common federal to state transfer issues

[neramseyer]

I have verified that my federal information is correct.  I have ran edit to redo my state taxes and nothing changes.  Turbo tax is filling out Michigan Schedule 1 wrong.  On page 2 of schedule 1, line 24, our birthdays are correct.  As the filer and the oldest my birthday year of 1952 and age of 72 is correct.  This should result in turbo tax filling out line 25, but instead it fills out line 27 giving me an additional tax break I'm not eligible for.

Line 25 should have a figure of 40,000 in it and line 27 should not be completed.  How can I correct this?  Thanks for your help.

[KeshaH]

If you'd like, we can look at your return and see exactly what you see to  help come to a resolution. The return will be scrubbed and won't include any of your personal details.

If you're using TurboTax Online:

Once you're logged in to your account,

- on the left hand panel, click on Tax Tools and then choose Tools

- on the pop up window, select Share my file with Agent

- you'll see a message saying you'll give us a copy of your tax return. Your personal information will be changed so we can't see any private information.

- click okay and you'll get another message with a token

If you're using TurboTax Desktop:

• Click on Online in the top menu of TurboTax Desktop for Windows
• Select 'Send Tax File to Agent'
• Write down or send an image of your token number and state then place in this issue.
• We can then review your exact scenario for a solution

Please reply to this message with your token so that we can further assist you. Let us know all the states, if any, that are included on the return.

[neramseyer]

Michigan Schedule 1,       token number:  4626745191317815 - 13356333.

.

Thanks again.

[KeshaH]

Thank you for sending your token.

I've looked over your return. The amount on line 27 of Schedule 1 is coming from Form 4884. Based on the Which Section of Form 4884 Should I Complete (page 22 of the MI return instructions), you would qualify for the Retirement and Benefits Subtraction on line 27. You can review Form 4884 to see the calculation for line 27.

For more information see: Instructions for Form 4884 (page 7 to see questions related to which section you should complete)

[neramseyer]

That is not right.  My age requires Line 25 to be filled out.  There is no reason to use Form 4884 because according to line 25, DO Not Complete Lines 26, 27, or 28.  Something is still wrong.

[neramseyer]

Thanks for your help up to now.  I have used turbotax for a number of years and have not had this problem with my MI state taxes before.  As Schedule 1 is filled out by turbotax, in the past, when you get to line 25 turbotax would correctly fill out line 25 because my birthday is 05/03/1952.  As line 25 states, you complete this line if the older of myself or my spouse was born between 01/01/1946 and 12/31/1952.  That applies to me and in past years turbotax correctly filled out line 25 and stopped because it says do not complete lines 26, 27 or 28. For some reason this year turbotax is not filling out line 25 but instead filling in line 27 and completing Form 4884.

This is incorrect.  Line 27 should be blank and Form 4884 should not be part of my tax forms.

For some reason when updating turbotax MI for 2024, someone changed the computer filters to cause this error.

Can I expect that this is going to be corrected in the near future or do have to stop using my favorite tax program?  I have a refund coming from the state of Michigan of about $2,200 and this error is stopping me from filing and receiving this refund.

I appreciate any help that you can give me and would ask to be informed of the plan and progress in correcting this error.

Thanks,  Neil

[MJS25]

I’m having the same problem. 
I think I’ll go back to the federal part and delete and reenter, then hopefully it will adjust on the state section. 

[MJS25]

I see on Michigan 4884 (which I shouldn’t be using due to birthdate) worksheet 3.3 that my subtraction is being based on my retirement benefits this year and not based on 25% of the state allowance. 
maybe this is why Turbo Tax is using the 4884 even though it says not to. 

[neramseyer]

I tried that and it did not work.  I have a sizeable refund coming so I gave up on Turbotax and went to the state web site and filled out the required tax forms correctly, printed them out and sent them in the mail.  If it ends up I'm wrong I figure I can always do an amended return.

[neramseyer]

I believe that Turbotax has a problem that it is not filling out correct forms based on my birthdate.  They are in no hurry to fix this, so I went to the state web site and filled out the correct tax forms, printed them out and sent them in the mail.

[jao10]

I am not sure but the directions in the MI-1040 booklet might be wrong so the turbo tax might also be wrong. Page 22 of the booklet "Worksheet 2: tier 2 and tier 3 Michigan standard deduction", line #7b. says if you are in the age periods of January 1, 1953 through January 1, 1958 and reached age 67, it says put it on line 25 of "2024 Michigan schedule 1 Additions and subtractions". But line 25 on that schedule says your time period for being born is January 1, 1946 through December 31, 1952, and reached age 67.  I could be wrong, I do make mistakes and comprehend things differently sometimes but I thing this is the problem.

[DianeW777]

Based on your question details, it seems the amount for 7a and 7b (both the line 7 amount) of Worksheet 2 goes to line 25 of Schedule 1. TurboTax will carry the appropriate amount to the MI-1040.

On page 20 are the definitions and instructions for the various dates and age qualifications for the subtractions and then go to page 22 for instructions on which worksheet to complete for either the pension subtraction or the standard deduction.

• Recipients born before 1946
• Recipients born 1946 - 1952
• Recipients born 1953 - January 1, 1958
• Recipients born  January 2, 1958 - 1962

The worksheets are 2, 3.1, 3.2 or 3.3 - MI-1040 Instructions and MI Schedule 1 

You can print your return to review it carefully before you file.  You have access to all forms when you choose to print your return in TurboTax Online/Mobile.  However you are required to pay before printing, but do not have to file until you are ready.

• Can I print a copy of my return in TurboTax Online before filing?

If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.

@jao10